2012.05.07 04:24:15 MARKET TALK: Credit Agricole Ups Taiwan 2012 CPI Forecast To 2.0%

0224 GMT [Dow Jones] Credit Agricole raises its 2012 CPI forecast for Taiwan to 2.0% from 1.2% following the above-view 1.44% on-year CPI rise recorded in April. Strategist Frances Cheung says: "Despite the inflation risk, we do not expect the central bank to start its rate hiking cycle this year - the growth momentum is far from strong." She adds, the near-term upside of front-end TWD IRS looks limited, as the gradual rise of the overnight interbank rate by the central bank (with an aim of taming inflationary expectations) hasn't moved the front-end much thus far. She says, the TWD's strength vs the USD in April was seasonal and is unlikely to carry on in coming months; she tips the USD/TWD at 29.00 at end-2012. The pair is currently at 29.312, up from 29.280 late Friday in Asia. (aries.poon@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires May 06, 2012 22:24 ET (02:24 GMT)